The hedge fund liquidated its position in the real estate data company, reversing its stance after attempting an activist campaign.

Third Point hedge fund maven Dan Loeb isn’t simply ending an activist campaign pushing for change at the CoStar Group, the firm is washing its hands of the real estate data firm completely.

Loeb’s hedge fund liquidated its position in CoStar after failing to get the desired results from its pressure campaign, Bisnow reported. The size of Third Point’s stake was unclear, but it counted more than 2 million shares as of June.

“We no longer believe that our original thesis holds true today and have disposed of our position in its entirety,” Loeb wrote to investors, declaring a strategic shift for CoStar back to its core business was no longer enough.

The letter was first reported by Reuters.

“We look forward to continuing to engage with stockholders as we continue to unlock the tremendous value of our digital ecosystem,” a CoStar spokesperson said in a statement, adding the company was already working on a plan to boost profitability when Loeb started saberrattling.

In January, Third Point launched an activist campaign to nominate several directors to CoStar’s eight-person board as part of an effort to reverse the company’s investment in Homes.com. At the time, Loeb criticized the “misallocation of billions of dollars” into Homes.com, citing an estimated $5 billion spent for an expected $80 million in revenue for 2025.

Loeb also criticized the “feckless board” for rewarding CoStar chief executive officer Andy Florance with “exorbitant pay packages” despite the company’s stock falling over the preceding five years.

A week after Loeb’s campaign launched, hedge fund D.E. Shaw began publicly pressuring CoStar for a board shake-up and strategic reset. Both urged CoStar to refocus on its core commercial real estate business and restructure or exit the Homes.com strategy.

At the start of the year, CoStar said it would scale back its Homes.com investment to target profitability by 2030, a move Loeb later dismissed as insufficient.

While shares in CoStar rose during early trading on Tuesday morning, the stock has fallen 40 percent year-to-date and fell below $45 per share in February, a threshold it has not crossed again since March 11.

— Holden Walter-Warner